What is purpose code P1007?

Purpose code P1007 is the advertising code in RBI's group P10, Other Business Services. Its description covers advertising and trade fair services.⁵⁶

Digital marketing agencies and other marketers billing clients abroad often look for this code. This page shows what the description and DGFT's SAC mapping cover, and where nearby work belongs.

What does the P1007 purpose code cover?

The P1007 purpose code covers advertising and trade fair services paid for by foreign clients. RBI's receipt purpose code list describes P1007 as: "Advertising, trade fair service".⁵⁶ DGFT's purpose code to SAC mapping reproduces the same wording.³ P1007 sits in group P10, "Other Business Services".⁵

The list comes from A.P. (DIR Series) Circular No. 84 dated 29 February 2012, which told banks to report all foreign exchange transactions under a revised purpose code list from April 2012.¹ RBI's annex PDF showed a captcha page when this page was checked, so the wording above is quoted from the HDFC Bank and DBS Bank India reproductions, which match each other word for word.⁵⁶

An earlier RBI list, now marked "Withdrawn" on the RBI website, described P1007 as "Advertising, trade fair, market research and public opinion polling services".² In the current list market research and public opinion polling are P1016.⁵

When should you use the P1007 purpose code?

Use the P1007 purpose code when a foreign client pays you for advertising, for buying or selling advertising space, or for trade fair and exhibition services.⁵³ Running advertising for a client matches the description.⁵

• Advertising campaigns: DGFT maps "Advertising Services" (998361) to P1007.³
• Media buying and ad space: Buying and selling advertising space or time, including "Sale of Internet advertising space" (998365), is mapped to P1007.³
• Trade fairs and exhibitions: Event, exhibition and trade show organisation (998596) is mapped to P1007.³

If more than one description could fit, confirm P1007 with your bank before the payment is credited.⁵

Who uses the P1007 purpose code?

P1007 fits Indian exporters paid for advertising or trade fair services.⁵ DGFT's mapping links it to "Advertising Services" (998361), buying and selling advertising space or time, including "Sale of Internet advertising space" (998365), and to event, exhibition and trade show organisation (998596) and some reservation and promotion SACs.³

• Digital marketing agencies: Agencies running paid search and social campaigns for clients abroad.
• Media buyers: Firms placing advertising for foreign clients.
• Advertising agencies: Agencies producing campaign creative for overseas brands.
• Exhibition organisers: Organisers selling stand space to foreign exhibitors.

What transactions are covered under P1007?

Transactions covered under P1007 are advertising fees, media buying receipts and trade fair income from foreign clients.⁵³ Each example below fits the description:

• Paid ads: For example, a digital marketing agency runs paid search and social ad campaigns for a UK brand.
• Media buying: For example, a media buying firm places ads for a foreign client.
• Campaign creative: For example, an ad agency produces campaign creative for a client in the UAE.
• Trade fair: For example, an exhibition organiser sells stand space to foreign exhibitors at a trade fair in India.

Which SAC codes does DGFT map to the P1007 purpose code?

DGFT's purpose code to SAC mapping (Version 1.0, 10 November 2023) lists these Services Accounting Codes (SAC) against P1007, among others where noted:³

The mapping lists 5 more SAC codes against P1007; see the DGFT file for the full list.³

When you generate an electronic Bank Realisation Certificate (e-BRC) on the DGFT portal, DGFT says you must choose the SAC that corresponds to the purpose code on the remittance.⁴ The mapping is many-to-many, so the same SAC can appear against several purpose codes.³

When should you not use the P1007 purpose code?

Do not use the P1007 purpose code for strategy, research or production work that another code describes.⁵ Each case below names the code to compare:

• Brand strategy or PR advice: Strategy and PR advice fit P1006.⁵
• Market research: Market research and public opinion polling are P1016.⁵
• Video production: Producing a video is P1101.⁵
• Design that is not advertising: Design work that is not advertising has no dedicated code; see purpose codes for design services.⁵

Where a payment sits on the line between two codes, the contract and invoice usually show which service the client is paying for, so keep them ready for the bank.

What documents are required for P1007?

A payment under P1007 needs the documents any export of services needs: an invoice, the Export Declaration Form (EDF), and the bank's inward remittance record that the e-BRC is generated from.⁷⁴ Under regulation 3(2) of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations), an exporter of services files the EDF with the specified authority within 30 days from the end of the month in which the invoice was raised.⁷

For software, the specified authority can also be Software Technology Parks of India (STPI), and in a Special Economic Zone it is the Development Commissioner.⁷ Exporters of services other than software may file the EDF on or before the date payment is received instead.⁷

How do you declare the P1007 purpose code?

You declare the P1007 purpose code by telling your bank the purpose of the inward remittance, then making sure the same code carries through to the EDF and the e-BRC.⁴⁷ The steps below follow that order.

1. Match the work to the P1007 description: Compare what the foreign client pays for with the RBI description of P1007 and the neighbouring codes.⁵
2. Describe the service on the invoice: Describe the service on the export invoice in words that match the P1007 description, so the bank can see why the code fits.⁵
3. Give the bank the P1007 purpose code: Tell your bank that the purpose of the inward remittance is P1007 when the payment arrives, using the bank's own inward remittance process.⁴
4. File the Export Declaration Form: File the EDF with the specified authority within 30 days from the end of the month in which the invoice was raised, or for non-software services on or before the date payment is received.⁷
5. Check the IRM and generate the e-BRC: Check that the bank's inward remittance message shows P1007, then generate the e-BRC on the DGFT portal and choose the SAC that corresponds to P1007.⁴

DGFT's eBRC FAQs place e-BRC generation under Services, then eBRC, then Generating eBRC, after you register on the DGFT website and link your Importer Exporter Code (IEC).⁴

How does P1007 affect FIRA, GST and income tax?

The P1007 purpose code states the purpose of the payment on the bank's record; GST, realisation and income tax follow their own rules.⁴ The code matters most where the e-BRC and the SAC you choose must line up with it.⁴

• FIRA: Ask your bank for its inward remittance advice, often called a Foreign Inward Remittance Advice (FIRA), and check that it shows the same purpose code before you rely on it for GST or bank records.
• e-BRC: DGFT describes the e-BRC as its confirmation that the exporter has received payment for the export of goods or services, and says the SAC you choose must correspond to the purpose code.⁴
• GST: A supply is an export of services under section 2(6) of the IGST Act, 2017 when the supplier is in India, the recipient is outside India, the place of supply is outside India, payment is received in convertible foreign exchange (or in Indian rupees where RBI permits), and the two are not merely establishments of a distinct person.⁸ Export of services is a zero rated supply, and a registered person can supply under bond or Letter of Undertaking without paying integrated tax.⁹
• Realisation: Regulation 5(1) of the 2026 Regulations requires the value of exported services to be realised within nine months from the date of invoice, or twelve months where the export is invoiced or settled in Indian rupees.⁷
• Income tax: The sources on this page do not cover income tax, and how a receipt is taxed depends on your facts, so confirm it with a chartered accountant.

For the GST side in more depth, see purpose codes and GST on export of services.

What are the common mistakes with the P1007 purpose code?

The common mistakes with the P1007 purpose code are choosing it for work another code describes, and leaving a wrong code uncorrected after the bank has reported it.⁵⁴

• Using the earlier-list wording: Some websites still show market research under P1007, which was its meaning in an earlier, withdrawn RBI list; in the current list market research is P1016.²⁵
• Leaving a wrong code in place: DGFT's eBRC FAQs say exporters must contact the bank to request a purpose code change, and that banks can amend the inward remittance message (IRM) they report to DGFT.⁴ Send the bank the remittance reference, the code used, the code you need and your invoice.
• Choosing a SAC that does not match: DGFT says exporters must choose the SAC that corresponds to the purpose code when generating an e-BRC.⁴

The full steps are in how to correct a purpose code after payment, and the effects are covered in what happens if you use the wrong purpose code.

Which purpose codes are related to P1007?

The purpose codes related to P1007 are the marketing, media and publishing codes below, from RBI's list.⁵⁶

To compare every receipt code, see the RBI purpose codes list for exporters, or shortlist codes for your work with the purpose code finder. Where a payment could fit more than one description, confirm the code with your bank or a chartered accountant before the money is credited.